Earnings Effects of Training Programs

Michael Lechner and Blaise Melly (blaise.melly@unibe.ch)

University of St. Gallen Department of Economics working paper series 2007 from Department of Economics, University of St. Gallen

Abstract: In an evaluation of a job-training program, the influence of the program on the individual earnings capacity is important, because it reflects the program effect on human capital. Estimating these effects is complicated because earnings are observed for employed individuals only, and employment is itself an outcome of the program. Point identification of these effects can only be achieved by usually implausible assumptions. Therefore, weaker and more credible assumptions are suggested that bound various average and quantile effects. For these bounds, consistent, nonparametric estimators are proposed. In a reevaluation of Germany's training programs of 1993 and 1994, we find that the programs considerably improve the long-run earnings capacity of its participants.

Keywords: Bounds; treatment effects; causal effects; program evaluation (search for similar items in EconPapers)
JEL-codes: C21 C31 J30 J68 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2007-07
New Economics Papers: this item is included in nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Working Paper: Earnings Effects of Training Programs (2007)
Working Paper: Earnings Effects of Training Programs (2007)
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